Touchstar warns on FY24 profits

29th Oct 2024 10:20

(Sharecast News) - Computing solutions and managed services supplier Touchstar warned on Tuesday that its FY24 trading performance was expected to be below expectations.

Touchstar stated its interim results indicated that its FY24 trading performance would be second-half weighted. However, it said on Tuesday that customers had returned to more of a "just in time" behaviour rather than a more aggressive order placement strategy and implementation.

In addition, Touchstar stated orders were taking longer to convert and "a significant order" due to be delivered in 2024 has now been rescheduled for rollout in 2025.

The AIM-listed group now believes FY24 revenues will be below previous expectations and "broadly similar" to the H1, with "a consequential impact" on profits for the year.

"The board is disappointed with this development but remains confident in the value and potential of the business. The strategic review announced on 26 September 2024 continues and shareholders will be updated on progress when appropriate," said Touchstar.

As of 1020 GMT, Touchstar shares had slumped 16.19% to 88.0p.

Reporting by Iain Gilbert at Sharecast.com